Dairy farm project 8 buffaloes
Project report for eight graded murrah buffaloes dairy farm
Dairy farm project 8 buffaloes is based on following assumptions
1-Freshly calved murrah female buffaloes in 1st or 2nd lactation will be purchased in two batches of four animals each/batch at an interval of 5 to 6 months.2-Availability of 2 acres of land for fodder cultivation is prerequisite for the project,3-Dung produced will be utilized as Manure for fodder cultivation.4-Cost of rearing calves not considered as it will be repealed by their sale value57In case of death of adult animal new buffalo will be purchased from insurance claim money.6-Heifers will be used as replacement stocks7 The scheme will be successful on the above guidelines if run by the dairy farmer on scientific lines.
Economics of dairy farming with 8 Graded murrah buffaloes | |
Project cost and bank loan | Cost. In Rs. |
Capital cost | |
Low cost Shed for 8buffaloes 50sq.ft/Buffalo @150/sqft | 60000 |
Low cost Calf pen for 8 calves 20 sq.ft./calf @150/sq.ft. | 24000 |
Cost of 4 graded murrah buffaloes with minimum average 10 liter milk yield 10 liter /day @52000/buffalo including transportation | 416000 |
Cost of dairy appliances @ 1000/buffalo | 8000 |
Cost of one hand operated chaff cutter | 10000 |
Total | 518000 |
Cost of feed for first batch of four buffalo for one month as per feed chart | 15400 |
Cost of insurance first animals @5% of animal cost | 10400 |
Cost of fodder cultivation in 2 acres of land for first session | 12000 |
Cost of medicine vaccine, electricity for first four buffaloes | 4200 |
Total recurring expenditure | 42000 |
TOTAL PROJECT COST | 560000 |
Margin money 10% of project cost | 56000 |
Bank loan 90% of project cost | 504000 |
CASH FLOW ANALYSIS | ||||||
Particulars | Project period | |||||
1 | 2 | 3 | 4 | 5 | 6 | |
Feeding during lactation period vide yearly lactation days and feed cost as per chart | 223600 | 192400 | 239200 | 218400 | 218400 | 239200 |
Feeding during dry period vide dry days and feed cost as per feed chart enclosed | 26400 | 13800 | 62400 | 72000 | 72000 | 62400 |
Medicine vaccine veterinary aid | 8000 | 8000 | 8000 | 8000 | 8000 | 8000 |
Insurance @5% of animal cost /year | 20800 | 20800 | 20800 | 20800 | 20800 | 20800 |
Cost of fodder cultivation | 48000 | 48000 | 48000 | 48000 | 48000 | 48000 |
other miscellaneous expenditure | 20000 | 20000 | 20000 | 20000 | 20000 | 20000 |
Total | 346800 | 303000 | 398400 | 387200 | 387200 | 398400 |
INCOME | ||||||
Sale of milk @Rs.35/liter during lactation days | 602000 | 521500 | 644000 | 588000 | 588000 | 644000 |
Sale of gunny bags | 1020 | 1260 | 1220 | 1160 | 1160 | 1220 |
Manure will be utilized in own farm | ||||||
Value of closing stock of 8 buffaloes(Depreciation on animal cost @10%/year) | 166400 | |||||
Value of building
(Depreciation on building@10%/year) |
33600 | |||||
Value of equipment
(Depreciation on equipment @15%/year) |
1400 | |||||
Total income | 603020 | 522760 | 645220 | 589160 | 589160 | 603020 |
Gross profit | 256220 | 219760 | 246820 | 201960 | 201960 | 448220 |
Calculation of BCR and IRR | ||||||
1 | 2 | 3 | 4 | 5 | 6 | |
Capital Costs | 518000 | |||||
Recurring Cost | 346800 | 303000 | 398400 | 387200 | 387200 | 398400 |
Total Costs | 864800 | 303000 | 398400 | 387200 | 387200 | 398400 |
Benefit | 603020 | 522760 | 645220 | 589160 | 589160 | 603020 |
Net Benefit | -261780 | 219760 | 246820 | 201960 | 201960 | 204620 |
Financial indicators | Estimated value | Preferred value |
Net Present Worth (NPW | 405167.48 | Should be+ve |
Benefit Cost Ratio(BCR) | 1.22:1 | >1 |
Internal Rate of return (IRR) | 37.629 | >15% |
Debt Service Coverage Ratio | 2.075 | >1.5 |
Loan Repayment for eight graded murrah buffalo:- Repayment of loan will start after grace period of six months. Total loan repayment period is 6-7 years. Details of monthly installment, interest payment, principal payment and balance is given in repayment schedule for eight graded murrah.